Content Options

Content Options

View Options

Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

payment service

    71 205(in accordance with regulation 2(1) of, and Schedule 1 to, the Payment Services Regulations):

      1. (a) Subject to (b), any159 of the following activities when carried out as a regular occupation or business activity:
        1. (i) services enabling cash to be placed on a payment account159 and all of the operations required for operating a payment account159;
        1. (ii) services enabling cash withdrawals from a payment account159 and all of the operations required for operating a payment account159;
        1. (iii) execution of payment transactions, including transfers of funds on a payment account with the user’s payment service provider or with another payment service provider159:
          1. (A) execution of direct debits159, including one-off direct debits159;
          1. (B) execution of payment transactions159 through a payment card or a similar device;
          1. (C) execution of credit transfers159, including standing orders;
        1. (iv) execution of payment transactions159 where the funds are covered by a credit line for a159payment service user:
          1. (A) execution of direct debits159, including one-off direct debits159;
          1. (B) execution of payment transactions159 through a payment card or a similar device;
          1. (C) execution of credit transfers159, including standing orders;
        1. (v) issuing payment instruments159or acquiring payment transactions159;
        1. (vi) money remittance;
        1. (vii) [deleted]159
        1. (viii) payment initiation services;159
        1. (ix) account information services.159
      1. (b) The following activities do not constitute payment services159:
        1. (i) payment transactions159 executed wholly in cash and directly between the payer159 and the payee159, without any intermediary intervention;
        1. (ii) payment transactions159 between the payer159 and the payee159 through a commercial agent authorisedin an agreement159 to negotiate or conclude the sale or purchase of goods or services on behalf of either the payer or the payee159 but not both the payer and payee159;
        1. (iii) the professional physical transport of banknotes and coins, including their collection, processing and delivery;
        1. (iv) payment transactions159 consisting of non-professional cash collection and delivery as part of a not-for-profit or charitable activity;
        1. (v) services where cash is provided by the payee to the payer159 as part of a payment transaction159 for the purchase of goods or services following an explicit request by the payer159 immediately before the execution of the payment transaction159;
        1. (vi) cash-to-cash currency exchange159 operations where the funds are not held on a payment account159;
        1. (vii) payment transactions159 based on any of the following documents drawn on the payment service provider with a view to placing funds at the disposal of the payee159:
          1. (A) paper cheques of any kind, including traveller's cheques;
          1. (B) bankers' drafts;
          1. (C) paper-based vouchers;
          1. (D) paper postal orders;
        1. (viii) payment transactions159 carried out within a payment or securities settlement system between payment service providers and settlement agents, central counterparties, clearing houses, central banks or other participants in the system;
        1. (ix) payment transactions159 related to securities asset servicing, including dividends, income or other distributions, or redemption or sale, carried out by persons referred to in (viii)159 or by investment firms, credit institutions159, collective investment undertakings, asset management companies providing investment services or by any other entities allowed to have the custody of financial instruments;
        1. (x) services provided by technical service providers, which support the provision of payment services, without the provider entering at any time into possession of the funds to be transferred, excluding payment initiation services or account information services but159 including:
          1. (A) the processing and storage of data;
          1. (B) trust and privacy protection services;
          1. (C) data and entity authentication;
          1. (D) information technology;
          1. (E) communication network provision; and
          1. (F) the provision and maintenance of terminals and devices used for payment services;
        1. (xi) services based on specific payment instruments159 that can be used only in a limited way and meet one of the following conditions159:
          1. (A) allow the holder to acquire goods or services only in159 the issuer's premises; or
          1. (B) are issued by a professional issuer and allow the holder to acquire goods or services only within a limited network of service providers which have direct commercial agreements with the issuer; or159
          1. (C) may be used only to acquire a very limited range of goods or services; or159
          1. (D) are valid only in the UK178, are provided at the request of an undertaking or a public sector entity, and are regulated by a national or regional public authority for specific social or tax purposes to acquire specific goods or services from suppliers which have a commercial agreement with the issuer.159
        1. (xii) payment transactions resulting from services provided by a provider of electronic communications networks or services, including transactions between persons other than that provider and a subscriber, where those services are provided in addition to electronic communications services for a subscriber to the network or service, and where the additional service is:159
          1. (A) for purchase of digital content and voice-based services, regardless of the device used for the purchase or consumption of the digital content, and charged to the related bill; or159
          1. (B) performed from or via an electronic device and charged to the related bill for the purchase of tickets or for donations to organisations which are registered or recognised as charities by public authorities, whether in the United Kingdom or elsewhere, 159
          provided that the value of any single payment transaction does not exceed £40, and the cumulative value of payment transactions for an individual subscriber in a month does not exceed £240;159
        1. (xiii) payment transactions carried out between payment service providers, or their agents or branches, for their own account;159
        1. (xiv) payment transactions and related services between a parent undertaking and its subsidiary or between subsidiaries of the same parent undertaking, without any intermediary intervention by a payment service provider other than an undertaking belonging to the same group;159
        1. (xv) cash withdrawal services provided through automatic teller machines where the provider is acting on behalf of one or more card issuers, is not party to the framework contract with the customer withdrawing money from a payment account, and does not conduct any other payment service.159
        [Note: articles 3 and 4(3) of, and Annex 1159 to, the Payment Services Directive]